KOKOMO, Ind. – Today the State of Indiana took legal action against the owner of a tire repair store in Kokomo accused of tax evasion and who owes the State more than half a million dollars in unpaid sales tax, employee withholdings and tire fees.

The Indiana Department of Revenue, represented by the Indiana Attorney General’s Office, filed legal action today against Dave Evans and his tire repair business, Dave Evans Tire Inc. of Kokomo. The State’s motions sought a temporary restraining order, which the Howard County Superior Court 4 granted, and a permanent restraining order that the court will hear February 25.

The temporary restraining order granted today means the tire repair store’s locations in Kokomo is required to cease operation until the hearing on the permanent restraining order is held. At that point, the State will request the company cease operation until the $550,932.92 in delinquent taxes are paid or a repayment plan is set up.

“When consumers make purchases and are charged sales tax it is required that the tax money be remitted to the state. When employees have their taxes withheld on their paychecks it is also required that this be remitted to the state. This defendant not only failed to remit taxes he collected, but shortchanged the state and other taxpayers by more than a half a million dollars. We support small business and private enterprise, but when an individual reduces his overhead through tax evasion, it undercuts other law-abiding competitors who play by the rules, and cannot be considered legitimate commerce,” Indiana Attorney General Greg Zoeller said.

“The vast majority of Indiana businesses file and remit their taxes,” noted Department of Revenue Commissioner Mike Alley. “Unfortunately some do not and use taxes collected to help operate their businesses. Sales taxes are paid by a business’s customer, and income tax withholding is paid by the business’s own employees. These funds are collected on behalf of the citizens of Indiana. When they are not remitted by businesses, customers, employees and everyone in Indiana suffers.”

Now that the business has been ordered to cease operation, the Attorney General’s Consumer Protection Division has made arrangements so that customers of Evans who had vehicles in the shop for tire repair can call (800) 382-5516 for expedited assistance in negotiating the return of any property. Customers who wish to file a consumer complaint against the business can call that number or go online to www.IndianaConsumer.com.

According to court documents, the total amount of unpaid tax that Evans, the owner, and Dave Evans Tire Inc. owes to the State is $550,932.92. No criminal charges have been filed. Today’s action was filed in civil court to enforce previous civil judgments, called tax warrants, the Department of Revenue had obtained against Evans and his business:

The DOR obtained 67 tax warrants for $455,587.11 in unpaid sales tax, also known as gross retail tax, that Evans’ business charged to customers but failed to remit to the State between April 1995 and January 2013.

The DOR obtained another 68 tax warrants for $87,183.95 for unpaid withholding tax between July 1995 and July 2013. That means Evans’ business withheld tax on its employees’ compensation but failed to remit them to the State as employers are required to do.

The DOR also obtained another 69 tax warrants against Evans’ business for $8,161.86 for unpaid tire fees between January 2005 and January 2013. Tire fees are collected when consumers purchase tires and the merchant is required to remit those fees to the State.

Once a tax warrant is entered, it automatically becomes a civil judgment against the taxpayer and the time for disputing the tax amount is past.

After Howard County Superior Court 4 Judge George A. Hopkins granted the temporary restraining order today, State officials from the Department of Revenue and the Attorney General’s Office visited the business location of Dave Evans at 800 S. Reed Rd. in Kokomo, and posted notices. The orange posted signs warn that the company is prohibited from conducting any retail business pending further order of the court.

The signs also note the Attorney General’s Consumer Protection Division phone number, (800) 382-5516, and web address, www.IndianaConsumer.com, that consumers can contact for assistance in getting their vehicles or property returned. An AG’s Office mediator will be assigned to assist consumers.

In seeking temporary and permanent restraining orders, the State asks the court to prevent Evans from selling or transferring the business or concealing or disposing of any financial assets until the delinquent taxes are paid. At a hearing at 1:30 p.m. February 25 in Howard County Superior Court 4, Evans will have an opportunity to present his case, and the State will ask that the TRO be extended permanently.

Zoeller noted that if the permanent restraining order is granted, the State will take legal action as necessary to obtain repayment of the $550,932.92 in delinquent taxes, including liquidation of any property or assets Evans owns.

NOTE: The State’s motions for temporary and permanent restraining order against Dave Evans and Dave Evans Tire Inc., filed in Howard County Court, are attached.

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